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Summary of Project Information (SPI)

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Project number	7760
Project name	Romanian American Enterprise Fund (Small Business Lending Program)
Country	Romania
Sector	Finance & Insurance
Department	Global Financial Markets Group
Company name	Romanian-American Small Business Lenders Ltd.
Environmental category	FI
Date disclosed	August 20, 1997
Status	Completed
Previous Events	Invested: July 31, 1998 Signed: June 17, 1998 Approved: October 21, 1997

Summary Of Project Information (SPI)

Project Name	Romania - Small Business Lending Program

Region	Central Europe

Sector

Project No007760
Projected Board DateSeptember 30, 1997
Company NameRomanian-American Small Business Lenders Ltd.
Technical Partner and/or Major Shareholders

The technical partner will be Shorebank of Chicago, an acknowledged leader in the design of small business lending programs.

Project Cost Including proposed IFC investment

US$10 million initially, but expected to reach US$20 million over time.

Location of project and Description of site

Borrowing Romanian enterprises will be identified in the future; their locations will be in Romania.

Description of Company and Purpose of Project

The project consists of providing medium-term loans to small businesses in Romania through an offshore Special Purpose Vehicle to which IFC and the Romanian-American Enterprise Fund will lend US$5 million each. The purpose of the project is to provide small, private Romanian businesses with loans of tenor currently not offered by Romanian financial institutions. The project thus helps fill an important gap in the provision of medium-term loans by the Romanian financial sector. It is expected to have a strong developmental impact on Romania’s incipient private sector. In addition, up to four participating local banks will receive training in small business lending.

Environmental Category and Issues

This is a financial intermediary (category FI) project according to IFC’s environmental review procedure. The project manager on the ground will be required to review eligible borrowers’ operations and the environmental impact of each sub-project. Each sub-project must comply with relevant host country environmental, health and safety requirements and applicable World Bank/IFC policies and guidelines.

Date SPI sent to PIC

August 20, 1997

For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384

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August 20, 1997 10:37 AM